The second “P” of the marketing mix, Promotion, sounds deceptively simple: a dep
ID: 390433 • Letter: T
Question
The second “P” of the marketing mix, Promotion, sounds deceptively simple: a department store advertises “buy one, get one free” for all women’s shoes, shoppers rush in, and record sales result! In reality, some of the most complex, data-driven decisions are promotion decisions. When a corporate giant like Samsung spends $4.3 billion on advertising, plus $5.3 billion on sales promotion, in a single year (2012), it’s clear that the funds must be spent strategically and results tracked carefully.
Contributing to the complexity of promotion decisions is the rise of social media and Internet marketing. Spending for online advertising topped $100 billion for the first time in 2012, and is expected to reach $163 billion by 2016 (Zenith Optimedia, 2012). These rapid changes in media usage – not to mention new technology that allows consumers to avoid advertising altogether – makes it essential that marketers develop a message that resonates with consumers, and deliver that message across the right assortment of advertising media.
If you noticed the simple equation above, you must be asking yourself “what’s wrong with that math?” The answer is: nothing at all. This is the math of integrated marketing communications – the simple idea that one compelling message, repeated in multiple media , produces better results than two different messages delivered through different media.
The fact is that you interact with media in radically different ways today than you did even five years ago. The advent of mobile devices (and mobile advertising), the ever-expanding influence of social media, the convenience of on-demand entertainment – all of these have contributed to the demise of traditional mass-market media like the “major” television networks, ABC, NBC and CBS.
With the proliferation of ways to deliver a marketing message, it becomes even more important that the message be consistent across each and every media outlet. Any ad on network TV that isn’t also supported with social media, internet advertising, and signage in the retail store simply isn’t working hard enough to deliver your message!
Another critical change in marketing communications is the shift from a one-way monologue (marketer to consumer) to a multi-way conversation (marketer to consumer, consumer to consumer, and consumer back to marketer). It has become a key role of marketing to not only monitor what consumers are saying about the product to each other, but to actually take steps to create positive “buzz” among consumers. No longer do marketers have sole control over the product messages delivered to consumers!
Sean Corcoran of Forrester Research (a leader in online media research) proposes looking at the world of interactive media as having three major categories:
Owned media – a website, Facebook page, YouTube channel, etc. that is created and controlled by a company. These media are used to build ongoing relationships with consumers.
Earned media – this is where “buzz” begins: viral videos, retweets, or blog comments that represent the voice of the consumer.
Paid media – paid searches through search engines like Google, Yahoo or Bing; online banner, button or display ads – all are included in this category.
As online media gains prominence, savvy marketers are making great use of all these communication methods to reach new audiences.
Online ad spending topped $100 billion for the first time in 2012, and is forecast to reach $163 billion by 2016. At the same time, print advertising budgets (newspapers and magazines) fell to just $34 billion in 2012. Clearly, marketers see the benefits of an online presence, which include:
Listening – careful listening to consumers online allows companies to understand their audiences more deeply than any other media.
Building relationships – as mentioned before, online media permits a dialogue between companies and their customers. This creates a more engaged, more committed consumer.
Promotion – online delivery of product information, usage tips, and even coupons can get online customers talking and sharing.
Managing reputations – companies can help to correct misinformation, respond quickly to complaints, and demonstrate their commitment to consumers and communities, all with a minimum of time and cost.
Problem-solving – rather than becoming defensive over negative comments on social media, companies can connect directly with dissatisfied customers and resolve issues before they escalate.
A major challenge for marketers who want to successfully integrate traditional and online media is to stay ahead of online media trends. As quickly as videos go viral and products are “liked,” they can just as quickly disappear. Participation in social media especially means a commitment to daily, if not hourly, attention to the rapid changes that virtually define this category of integrated communication.
Assignment:
In this assignment, you will complete another key section of your marketing plan:
Write a 2-3 page recommendation for the integrated promotional plan necessary to successfully market your health care product or service.
· Describe the audience you hope to reach with the promotion efforts, the primary message to be delivered across all media, and the rationale for your media choices. Take into consideration the geographic reach of your target market, and adapt your media choices accordingly.
· Also, be realistic in cost considerations – do not plan a $2 million ad campaign for a product that will only create $1 million in revenue. The U.S. Small Business Administration suggests spending 7-8% of sales revenue on marketing and advertising each year. So, a new product expected to produce $10 million in sales annually might have a $700,000–$800,000 ad budget for the first year.
· You will need to research the costs of local media and other communications such as public relations or special events to create an estimated budget for your total promotional plan. Much of this information can be found on the websites of local media outlets (search “ad rates”). For purposes of this assignment, estimated costs are acceptable.
· Within this section draft, please demonstrate your grasp of the marketing terminology and concepts related to promotion and advertising. Be sure to include the use of traditional media and interactive/social media that you feel are the best choices to reach your target consumers. Explain why you have chosen these media, using the concepts of market segmentation and consumer buying behavior.
The second “P” of the marketing mix, Promotion, sounds deceptively simple: a department store advertises “buy one, get one free” for all women’s shoes, shoppers rush in, and record sales result! In reality, some of the most complex, data-driven decisions are promotion decisions. When a corporate giant like Samsung spends $4.3 billion on advertising, plus $5.3 billion on sales promotion, in a single year (2012), it’s clear that the funds must be spent strategically and results tracked carefully.
Contributing to the complexity of promotion decisions is the rise of social media and Internet marketing. Spending for online advertising topped $100 billion for the first time in 2012, and is expected to reach $163 billion by 2016 (Zenith Optimedia, 2012). These rapid changes in media usage – not to mention new technology that allows consumers to avoid advertising altogether – makes it essential that marketers develop a message that resonates with consumers, and deliver that message across the right assortment of advertising media.
If you noticed the simple equation above, you must be asking yourself “what’s wrong with that math?” The answer is: nothing at all. This is the math of integrated marketing communications – the simple idea that one compelling message, repeated in multiple media , produces better results than two different messages delivered through different media.
The fact is that you interact with media in radically different ways today than you did even five years ago. The advent of mobile devices (and mobile advertising), the ever-expanding influence of social media, the convenience of on-demand entertainment – all of these have contributed to the demise of traditional mass-market media like the “major” television networks, ABC, NBC and CBS.
With the proliferation of ways to deliver a marketing message, it becomes even more important that the message be consistent across each and every media outlet. Any ad on network TV that isn’t also supported with social media, internet advertising, and signage in the retail store simply isn’t working hard enough to deliver your message!
Another critical change in marketing communications is the shift from a one-way monologue (marketer to consumer) to a multi-way conversation (marketer to consumer, consumer to consumer, and consumer back to marketer). It has become a key role of marketing to not only monitor what consumers are saying about the product to each other, but to actually take steps to create positive “buzz” among consumers. No longer do marketers have sole control over the product messages delivered to consumers!
Sean Corcoran of Forrester Research (a leader in online media research) proposes looking at the world of interactive media as having three major categories:
Owned media – a website, Facebook page, YouTube channel, etc. that is created and controlled by a company. These media are used to build ongoing relationships with consumers.
Earned media – this is where “buzz” begins: viral videos, retweets, or blog comments that represent the voice of the consumer.
Paid media – paid searches through search engines like Google, Yahoo or Bing; online banner, button or display ads – all are included in this category.
As online media gains prominence, savvy marketers are making great use of all these communication methods to reach new audiences.
Online ad spending topped $100 billion for the first time in 2012, and is forecast to reach $163 billion by 2016. At the same time, print advertising budgets (newspapers and magazines) fell to just $34 billion in 2012. Clearly, marketers see the benefits of an online presence, which include:
Listening – careful listening to consumers online allows companies to understand their audiences more deeply than any other media.
Building relationships – as mentioned before, online media permits a dialogue between companies and their customers. This creates a more engaged, more committed consumer.
Promotion – online delivery of product information, usage tips, and even coupons can get online customers talking and sharing.
Managing reputations – companies can help to correct misinformation, respond quickly to complaints, and demonstrate their commitment to consumers and communities, all with a minimum of time and cost.
Problem-solving – rather than becoming defensive over negative comments on social media, companies can connect directly with dissatisfied customers and resolve issues before they escalate.
A major challenge for marketers who want to successfully integrate traditional and online media is to stay ahead of online media trends. As quickly as videos go viral and products are “liked,” they can just as quickly disappear. Participation in social media especially means a commitment to daily, if not hourly, attention to the rapid changes that virtually define this category of integrated communication.
Assignment:
In this assignment, you will complete another key section of your marketing plan:
Write a 2-3 page recommendation for the integrated promotional plan necessary to successfully market your health care product or service.
· Describe the audience you hope to reach with the promotion efforts, the primary message to be delivered across all media, and the rationale for your media choices. Take into consideration the geographic reach of your target market, and adapt your media choices accordingly.
· Also, be realistic in cost considerations – do not plan a $2 million ad campaign for a product that will only create $1 million in revenue. The U.S. Small Business Administration suggests spending 7-8% of sales revenue on marketing and advertising each year. So, a new product expected to produce $10 million in sales annually might have a $700,000–$800,000 ad budget for the first year.
· You will need to research the costs of local media and other communications such as public relations or special events to create an estimated budget for your total promotional plan. Much of this information can be found on the websites of local media outlets (search “ad rates”). For purposes of this assignment, estimated costs are acceptable.
· Within this section draft, please demonstrate your grasp of the marketing terminology and concepts related to promotion and advertising. Be sure to include the use of traditional media and interactive/social media that you feel are the best choices to reach your target consumers. Explain why you have chosen these media, using the concepts of market segmentation and consumer buying behavior.
Explanation / Answer
Promotion is about all activities that include communicating with the customer about the product and its features. Once a company has worked on the product and price elements, it is time to propagate the knowledge to the consumer about the product.
Information propagated to the customer at this stage helps them in making purchase decisions about the product. There is always some cost associated with promotion. But since the result is often an increase in sales or customer loyalty, there is thought to be long term return on this investment. There are many ends that a company may try to reach through a promotion including but not limited to an increase in sales, acceptance of new products, brand equity creation and brand positioning, addressing competitor actions and rebranding.
Traditional marketing means any type of promotion, advertising or campaign that has been in use by companies for years, and that has a proven success rate. Methods of traditional marketing can include print advertisements, such as newsletters, billboards, flyers and newspaper print ads. Other forms of traditional marketing include television spots or commercials, as well as radio spots advertising a business, product or service.
In today's world where in a lot of data sharing happens on social media, the most prefferred form of Marketing according to my choice would be the social media marketing or digital marketing. That is because you can easily propagate your concept of the product wijthout any limitations and make it interactive to your audience. The major plus point in using digital marketing is that you can naroow down your target group accroding to the database filters avaiable, this ensures better efficiency of your marketing resources.
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